19. Which of the following should be included in U.S. GDP?
a. A car manufactured in Japan and sold in the United States.
b. A car manufactured in Japan by a U.S. firm and sold in the United States.
c. A car manufactured in the United States and sold in Japan.
d. A used car manufactured in the United States and sold in Japan.
e. Both B and C are correct.
Give this one a try later!
19. C Not A or B because the car was not produced in the U.S.. Compare
this with GNP.
22. If a music company purchases 50 cents worth of materials and pays $5.00 per CD
to workers to produce an $18.00 CD, that firm's value added per CD is:
a. 50 cents.
b. $4.50.
, c. $5.50.
d. $17.50
e. $18.00.
Give this one a try later!
22. D. By definition value added is sales minus all goods and services used
in production that were bought from other firms. So in this case 18.00 - 0.50
=17.50.
20. The argument that higher taxes lead to less employment is most likely to hold if: a.
labor demand is vertical. b. labor supply has a steep slope. c. labor supply has a
relatively flat slope. d. labor supply has the same slope as labor demand. e. labor
demand is relatively flat.
Give this one a try later!
C Just draw a steep and a °at supply curve and shift labor demand back
(increased taxes, ceteris paribus).
15. Suppose that a hardware store had $1000 of paintbrushes on its shelves at the
beginning of the year and $1500 at year-end. The inventory amount included in GDP
would be:
a. $1000.
b. $1500.
c. $1250.
d. $500.
e. None of the above.
Give this one a try later!
a. A car manufactured in Japan and sold in the United States.
b. A car manufactured in Japan by a U.S. firm and sold in the United States.
c. A car manufactured in the United States and sold in Japan.
d. A used car manufactured in the United States and sold in Japan.
e. Both B and C are correct.
Give this one a try later!
19. C Not A or B because the car was not produced in the U.S.. Compare
this with GNP.
22. If a music company purchases 50 cents worth of materials and pays $5.00 per CD
to workers to produce an $18.00 CD, that firm's value added per CD is:
a. 50 cents.
b. $4.50.
, c. $5.50.
d. $17.50
e. $18.00.
Give this one a try later!
22. D. By definition value added is sales minus all goods and services used
in production that were bought from other firms. So in this case 18.00 - 0.50
=17.50.
20. The argument that higher taxes lead to less employment is most likely to hold if: a.
labor demand is vertical. b. labor supply has a steep slope. c. labor supply has a
relatively flat slope. d. labor supply has the same slope as labor demand. e. labor
demand is relatively flat.
Give this one a try later!
C Just draw a steep and a °at supply curve and shift labor demand back
(increased taxes, ceteris paribus).
15. Suppose that a hardware store had $1000 of paintbrushes on its shelves at the
beginning of the year and $1500 at year-end. The inventory amount included in GDP
would be:
a. $1000.
b. $1500.
c. $1250.
d. $500.
e. None of the above.
Give this one a try later!
